The year 2018 is in the books—and 2019 has arrived. For the real estate business, this means new opportunities to enter (and capitalize on) the housing market. In 2018 we saw market ups and downs; however, the real estate forecast for 2019 has shown promise in some areas. Here are some real estate trends in 2019 (originally outlined by Forbes) to look for as we celebrate a New Year.
- Mortgage rates show no signs of slowing down. The rates we are seeing now have not been with us since the housing crash of 2008, which can be a little worrisome. This being said, rates have climbed over the last two years—and with sturdy economic growth—should continue to head north.
- Millennials are looking to buy homes. The largest class of millennials will turn 30 in 2020, which means this demographic is in the prime age range for settling down and shopping for homes. Millennials will continue to comprise the largest share of home buyers in 2019—with this trend showing no signs of stalling out anytime soon. Millennials will make up the lion’s share of home buying over the next decade. Potential investors should be pleased by this, as this aspect of real estate trends is unlikely to drop off.
- Rents will rise. More strapped-for-cash buyers will opt to keep renting, instead of forking over the cash for a mortgage. Recent dips in rent will reverse and return to positive for investors. However, rates in rent will not outpace income growth since apartments will continue to pop up steadily.
- Investors will duke it out. Institutional investors have numerous resources at their disposal, which makes the real estate landscape a little trickier for smaller, individual buyers. This fact concerning funding, coupled with rising interest rates, means that competition is quite fierce for individual investors in the current housing market.
- Set to slow down. The housing market in 2019 is expected to enter a small slump. This slow-down, however, should not necessarily carry cause for alarm. Slowdown periods are normal and will allow incomes to make up the distance and normalize.
Looking over common real estate trends in 2019 will set you up for success in all of your housing endeavors. If you’re thinking about moving into the market (and that could be buying or selling) in the West Alabama area, give us a ring at 334-289-3470 or visit us at www.billmackey.com. If you want more up-to-date news on current real estate trends or have any other questions concerning the real estate business, feel free to follow our blog.